Impact of Corporate Governance Practices on the Financial Performance of Conventional Banks and Closed Ended Mutual Funds in Pakistan

Muhammad Zeeshan , Inam Ullah Khattak , Abdul Kabeer , Dr. Alam Rehman
  • Muhammad Zeeshan College of Business Administration, Liaoning Technical University, China
  • Inam Ullah Khattak Senior Auditor, Accountant General of Pakistan Revenues S.O Peshawar
  • Abdul Kabeer MS Scholar National University of Modern Languages Islamabad
  • Dr. Alam Rehman National University of Modern Languages; Pakistan

Abstract

This research investigates the effect of corporate governance practices on Conventional Banks and Closed-Ended Mutual Funds financial performance in Pakistan. The analysis was carried out using twenty-five banks as a sample out of 35 from the banking sector & six Closed Ended Mutual Funds out of 21 from mutual funds sector of Pakistan. The results were predicted using correlation and regression to find the relationship and effect of Corporate Governance on financial performance. The findings indicate that board diversity has a positive and significant impact, and board size has a negative significant influence on the financial performance. The results also predicted that CEO’s duality has a negative significant impact whereas managerial ownership and institutional ownership have positive significant effects on financial performance. The results predicted an insignificant difference in corporate governance practices of closed-ended mutual fund and conventional banks in Pakistan. Therefore, it is suggested that the banking and fund sectors should exercise corporate governance practices. This study has some managerial implications and can be tested in other sectors.

 

Keywords: Corporate Governance, Organization Performance, Conventional Banks in Pakistan, and Close Ended Mutual Funds Companies in Pakistan.

Published
2020-09-26
How to Cite
[1]
M. Zeeshan, I. U. Khattak, A. Kabeer, and D. A. Rehman, “Impact of Corporate Governance Practices on the Financial Performance of Conventional Banks and Closed Ended Mutual Funds in Pakistan”, jmr, vol. 5, no. 2, pp. 64-82, Sep. 2020.